Kakheti Regional Development Program
Kvareli Urban Regeneration
ABBREVIATED RAP
March 20, 2012
Municipal Development Fund Georgia
CURRENCY EQUIVALENTS
(as of 16 march 2012)
Currency Unit – lari (GEL)
$1.00 = GEL1.65
ABBREVIATIONS
ACS / – / Acquisition and compensation SchemeAB
AH / –
– / Affected Business
Affected Household
AP / – / Affected Person
CBO
CSC / –
– / Community Based Organization
Construction Supervision Consultant
DMS
EPARD / –
– / Detailed Measurement Survey
Environment Protecction Analysis and Resettlment Division
GoG / – / Government of Georgia
GRC / – / Grievance Redress Committee
IA / – / Iimplementing Agency
IFI / - / International Financial Institution
IP / – / Indigenous Peoples
EMA / – / External Monitoring Agency
km / – / Kilometre
LARC / – / land acquisition and resettlement commitee
RAP
MDF / –
– / Resettlement Action Plan
Municipal Development Fund
RPF / – / Resettlement Policy Framework
M&E / – / Monitoring and Evaluation
MFF / – / Multitranche Financing Facility
MOF / – / Ministry of Finance
MPR / – / Monthly Progress Report
MRDI / – / Ministry of Regional Development and Infrastructure
NAPR / – / National Agency of Public Registry
NGO / – / Non-Governmental Organization
PEMI / – / Persons Experiencing Major Impact
PFR / – / Periodic Financing Request
PPR / – / Project Progress Report
PPTA / – / Project Preparatory Technical Assistance
R&R / – / Resettlement and Rehabilitation
RoW / – / Right of Way
SES / – / Socioeconomic Survey
Table Contenst
Executive Summary / 81 /
Introduction
/ 131.1 /
Project Background
/ 131.2 /
Kvareli Subproject
/ 131.3 /
Expected Impacts and Applicable Resettlement Instrument
/ 141.4 /
Preparation of Abbreveiated RAP
/ 151.5 /
Conditions for Project Implementation
/ 152 / Census and Impact Assessment / 16
2.1 /
Introduction
/ 162.2 /
Impact Assessment
/ 162.2.1 /
Impact on land, Crops and Trees
/ 162.2.2 /
Impact on Buildings and Relocation Needs and
/ 162.2.3 /
Business Impacts and loss of incomes
/ 162.2.4 / Vulnerable Persons / 18
2.2.5 / Impact on Common Property Resources / 18
3 /
Legal and policy Framework
/ 193.1 /
General
/ 193.2 / Legal Framework / 19
3.2.1 /
Georgia’s Laws and Regulations on Land Acquisition and Resettlement
/ 193.2.2 /
WB’s Policy on Involuntary Resettlement
/ 203.2.3 /
Comparison of Georgian Legislation on LAR and WB Resettlement Policy
/ 233.2.4 /
Resettlement Policy Commitments for the Project
/ 233.2.5 /
Compensation Eligibility and Entitlements Eligibility
/ 224 /
Institutional Arrangement
/ 254.1 /
Introduction
/ 254.1.1 /
Kvareli Municipality
/ 254.1.2 /
Municipality Registration Office
/ 264.2 /
Other Organizations and Agencies
/ 264.2.1 /
Civil Works Contractor
/ 264.2.2 /
Court of Georgia
/ 264.2.3 /
Ministry of Finance
/ 264.2.4 /
Ministry of Justice
/ 264.2.5 /
The World Bank
/ 265 /
Consultation and Participation
/ 265.1 /
Introduction
/ 265.2 /
Summary of Consultation during SECHSA Study
/ 275.3 /
Consultation meetings with the APs during RAP Preparation and Disclosure of Draft Abbreviated RAP
/ 286 /
Grievance Redress Mechanism
/ 316.1 /
Objectives
/ 316.2 /
Grievance Resolution Process
/ 326.3 /
Formation of GRC
/ 327 /
Implementation Schedule
/ 338 /
Costs And Financing
/ 338.1 /
Compensation for Business Interruption
/ 338.2 /
Summary LAR Cost and Flow of Funds
/ 339 /
Monitoring and Reporting
/ 349.1 /
Introduction
/ 349.2 /
Monitoring and Evaluation Indicators
/ 349.3 /
Level of Monitoring
/ 34Definitions
Beneficiary Community: All persons and households situated within the government-owned or acquired property who voluntarily seek to avail and be part of the Project and represented by a community association that is duly recognized by the community residents, accredited by the local government, and legally registered with the appropriate institutions.
Compensation: Lump-sum Payment of the replacement cost of the acquired assets.
Entitlement: Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to Affected People, depending on the nature of their losses, to restore their economic and social base.
Improvements: Structures constructed (dwelling unit, fence, waiting sheds, animal pens, utilities, community facilities, stores, warehouses, etc.) and crops/plants planted by the person, household, institution, or organization.
Affected People (AP): Individuals affected by Project-related impacts.
Affected Household (AH): All members of a household residing under one roof and operating as a single economic unit, who are adversely affected by the Project. It may consist of a single nuclear family or an extended family group.
Affected Business(AB): Businesses affected by Project-related impacts.
Relocation: The physical temporary relocation of a AP/AH/AB from her/his pre-Project place of residence.
Relocation Cost: The value determined to be fair compensation for land based on its productive potential and location.. The replacement cost of houses and structures (current fair market price of building materials and labour without depreciation or deductions for salvaged building material), and the market value of residential land, crops, trees, and other commodities.
Mitigation Measures: All measures taken to mitigate any and all adverse impacts of the Project on AP’s property and/or livelihood, including compensation, relocation (where relevant), and rehabilitation of the damaged/removed infrastructure and installations.
Sakrebulo: Representative body of local self-government. The representative and executive branches of self-government are represented accordingly by Local Council (Sakrebulo) and the Gamgebeli of municipal level. The exclusive responsibilities of self-government include land-use and territorial planning, zoning, construction permits and supervision, housing, and communal infrastructure development.
Executive Summary
The main objective of implementation of RAP is to improve or at least restore the social and livelihood resources of the APs at their pre-project level. The process of implementation should ensure that this objective is achieved over a reasonable time with allocated resources. Therefore, monitoring of the process of RAP implementation and delivery of institutional and financial assistance to the APs has been designed as an integral part of the overall functioning and management of the Project.
The Government of Georgia has asked the World Bank to support financing of regional development project in Kakheti region. The proposed program of interventions will emphasize tourism and agriculture as two key pillars and drivers of economic growth. The proposed initial project will focus on support for the tourism sector and enabling the environment for the private sector to invest in Kakheti.
Kvareli, one of the most beautiful cities ofGeorgia, has a rich history. It is located in 160 km from Tbilisi. Records and archeological findings demonstrate the existence of considerable dwellings on that territory.
One of the components of Kvareli subproject is restoration of buildings in the central part of the town. Conservation-restoration designs have been developed for following buildings in selected areas:
– restoration of Kvareli Castle;
– rehabilitation of Local Government building;
– restoration of façade of administrative building (Chavchavadze str. N87);
– restoration of fences and gates on Chavchavadze and Kudigora Streets
Expected Impacts and Applicable Resettlement Instrument
The zone of rehabiltiation is located on two central streets of Kvareli, in particular: Kudigora and Chavchavadze Streets. Physical work will take place in a total of 71 buildings, out of which three are non-residential. These include two administrative buildings and the Kvareli Castle. The remaining 68 residential buildings are resided by 71 households and occupied by 33 businesses, majority of which are of small size.
The project does not involve any permanent resettlement or physical relocation of affected households or businesses; only temporary disruptions to businesses are anticipated. No temporary relocation of households is anticipated at this stage To mitigate any negative impacts on houselholds and business welfare, this Abbreviated RAP was prepared in accordance to the WB OP/BP 4.12 and the RPF approved for the KRDP.
Consultations were conducted with population living in planned project area. During the consultations it was revealed that in case temporary relocation of businesses or households are required for unforeseen reasons, none of households or businesses prefers to be relocated to temporary accommodation facilitated by the project. All ABs agreed to take lump-sum compensation and continue to pay regular salaries to their employees. Before the launch of construction activities the information boards with contact requisites and addresses will be arranged in all business offices according to which employees will have information to whom to address in case of violation of their rights. The committee is entitled to consider all complaints and to have the final decision within 7 days.
Based on the type of works for Buildings Restoration envisaged under Kakheti Regional Development Project, buildings are categorized into three types:
· Category I - Residents/users ofbuildings will not require temporary relocation;
· Category IIResidents/users of buildings will be given the option to relocate temporarily;
· Category III - Residents/users ofbuildings would be required to relocate temporarily.
The following 20 criteria are used to define the category of the buildings:
# / description of Works1 / Finishing of facade
2 / Installation of doors/windows
3 / Arrangement of balconies
4 / Strengthening of foundations and retaining walls outside the building
5 / Strengthening of foundation in basement (in non-residential area)
6 / Arrangement of seismic belt in attic
7 / Replacement of roof covering
8 / Partial replacement of roof structures
9 / Rehabilitation of fences and gates
10 / Strengthening of foundations and retaining walls inside the building
11 / Partial re-arrangement of load-bearing walls
12 / Complete replacement of roof structures
13 / arrangement of new floor (storey)
14 / arrangement of attic
15 / Arrangement of balcony and stairs, when access to the building is limited
16 / Extension and strengthening of openings
17 / Arrangement of new reinforced-concrete floor covering
18 / Arrangement of seismic belt at floor covering level
19 / Complete re-arrangement of walls
20 / complete demolition of building
Buildings that only involve works under items 1-9 belong to category I.
Buildings that involve any of the works under items 10-16, but not 17-20 belong to category II
Buildings that involve any of the works under items 17-20 belong to category III.
All 71 households and 33 businesses occupying the buildings subject to physical work are in category I.
Affected Households
Overall, all of the 71 households residing in the 68 buildings are in category I, and will not be affected for the duration of the project related civil works. In the process of rehabilitation impact on the househols residing at the above mentioned buildings will be minimal, whereas all above mentioned households have some benefit due to the project implementation.
The complete list of the 71 households is found in Annex 1
Business Impacts and loss of profit
There are 33 businesses operating in the 68 buildings subject to physical work, which may experience loss of profit due to reduced number of customers during restoration work. This loss is estimated to be less than 20%. Businesses in buildings subject to physical work will be compensated for expected 20% decline of profit during 3 months (see Annex 1). Based on survey data, none of businesses will be requierd to close during construction work.
Compensation amount, which was calculated as 20% of profit was established with close consultations with business owners. All business owners assured that they are not going to decrease the amount of salaries to employees, and that they are not going to give temporary leave to them. These provisions on the compensation for 20% loss of profit and the continued payment of salaries to employees will be reflected in letters of agreement, which will be signed by business owners prior to the transfer of compensation funds. No construction work will commence on a building until (a) the letters of agreement are signed by the owners of businesses operating in the building and (b) compensation is paid to them. If business owners incur loss of profit greater than 20% during the period of disruption and can demonstrate it with verifiable proof, they would be able to request additional compensation through the grievance redress mechanism described in the RAP.
Vulnerable Project Affected People
No vulnerable housholds will be affected by this subproject. Although there are 10 vulnerable households (all under poverty line) residing in the 68 buildings where physical work will take place, since they are in Category I buildings where temporary relocation is not required, they are not considered as AHs. , ..
Costs and Financing
The 33 owners of the temporarily affected businesses are eligible for compensation of business profit losses corresponding to the period of business interruption. The losses are valuated based on tax declaration, or in case of abscense of such proof, based on minimum subsitence income for the households consisting of 5 persons. Amount of business employees affected by the project is 0. All employees will be paid salaries uninterrupted.
Compensation for expected losses due to decline of business activities (20% of net monthly profit multiplied on 3 months) for 33 businesses constitutes 5,818.00 GEL.
In case the duration of business disruptions lasts longer than anticipated the contingency funds will be available to cover additional compensation costs. Contingency funds will be sufficient for additional three month. If business owners incur loss of profit greater than 20% during the period of disruption and can demonstrate it with verifiable proof, they would be able to request additional compensation through the grievance redress mechanism described in the RAP, which will be covered by the contingency fund. In case the category of buildings would be changed to category II or III in the future for unforeseen reasons, the additional cost of compensation and allowance related to these changes would also be covered by the contingency fund.
Summary LAR Cost and Flow of Funds